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A new start in downtown Loveland

Developer sees 'real potential' in proposal to rebuild area

By Craig Young Reporter-Herald Staff Writer

Posted:
01/14/2014 05:29:03 PM MST

This photograph, taken Tuesday, Jan. 14, 2014, from the third floor of the Rialto Theater Center building, shows the area proposed for redevelopment by the city of Loveland, Larimer County and The Michaels Development Co. This view, looking southeast, shows the existing buildings and city parking lots between Lincoln Avenue (on the left) and Cleveland Avenue, from the alley north of Third Street all the way south to First Street in the distance.
(
Jenny Sparks
)

LOVELAND -- The developers who could completely rebuild 21/2 blocks of downtown Loveland say they wouldn't be here if they weren't confident of success.

Two representatives of New Jersey-based Michaels Development Co. came to Loveland this week to start a process that could result in all new construction between Lincoln and Cleveland avenues from First Street north to the alley north of Third Street - within three to five years.

Whitney Weller, senior vice president with Michaels, said her company's offices around the country receive two to three requests for development proposals a day.

"We don't go after every one. We make sure we're not wasting our time," she said.

City Council agenda

Scott Puffer, vice president for development, visited Loveland last summer after the company received Loveland's "request for expression of interest."

He started researching the city and the market conditions here. The result was Michaels Development's official statement of interest, sent to the city in October.

Weller and Puffer emphasized that the proposal is in its very early stages, but the development could include a 44,000-square-foot Larimer County office building with retail on the first floor, as many as 200 market-rate rental apartments, a first-run movie theater, a parking structure and areas for up to 500 cars, flexible office space and retail space.

At a meeting with about 30 downtown business and property owners Monday night and during an interview Tuesday, Weller said repeatedly that the eventual form the development takes will be determined by the wishes of the city government and the community.

Michaels Development, a 40-year-old company, has built projects containing more than 50,000 residential units in 34 states, she said.

"We come with a great deal of experience ... but we'll want to have you be a part of the process," Weller said.

This aerial depiction of the development area shows Block 1 at the bottom, bounded by First and Second streets, which could contain the county building and retail space. Block 2 in the middle could have apartments and parking, and Block 3 at the top could have more apartments, office and retail space, and parking.
(
Special to the Reporter-Herald
)

"Our goal is to build something that will really revitalize this downtown area," she said.

'Yes, It's Time'

The two company representatives spent Monday and Tuesday meeting with county and city officials and downtown "stakeholders."

At the Monday night meeting, several community members asked questions about the project. The tone stayed positive.

The city of Loveland owns some of the property in the development area - north and south of Third Street along Lincoln Avenue, where it knocked down some old buildings and put in parking lots and a temporary park.

The rest of the area contains several businesses, small apartment buildings and private homes that would have to be purchased to make way for the construction.

Mike Scholl, Loveland's economic development manager, said the city has had preliminary conversations with some of the property owners, who expressed "a general willingness."

If an owner refused to sell, the city potentially could use its power of eminent domain to force a sale, but that would be a last resort.

"It's not a tool we would choose to employ as a first step," he said.

Weller said she couldn't think of a time that a property was condemned to make way for a Michaels Development project during her 12-year tenure. She told of a case in Ohio in which her company built its development around a single barbershop whose owner refused to be bought out.

City Funding

Funding for the Loveland project - which could cost $30 million to $60 million, including the county building - would come from a variety of sources, Weller said, including some city participation.

But she said her company's approach is to minimize the funding "gap" that it would need the city to cover.

"We're not coming in and saying we're going to do this, and we're going to need money," she said.

Added Scholl: "This project just won't occur without the city at the table in a meaningful way."

Although many of the company's developments around the country feature affordable-housing components, Weller said the city of Loveland specified market-rate apartments for this project.

If the city chooses Michaels Development and begins the negotiation and planning process, Scholl said groundbreaking could take place in early 2015. Weller said the project could be finished three to five years from now, depending on a number of factors.

Information about Michaels Development Co. and its parent company, The Michaels Organization, is available at themichaelsorg.com.

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